China has a "One Country, Two Laws" policy that lets Hong Kong operate outside the restrictions of mainland China. This is a great idea! I bet it could work for America, too. It could set up two versions of entitlement programs: one for those who believe that the government should provide universal coverage, and one for those who believe that government governs best which governs least. And may the best team win!
Team Blue, the universal coverage believers, would continue under the existing entitlement laws of the U.S. They would continue to pay into Medicare, Social Security, and the new health care assurance programs.
Team Red, the limited government believers, wouldn't pay any taxes for social programs. If their employer provides health care and retirement as a benefit, they would get its cash value instead. They would be free to create new social programs such as voluntary cross-border health exchanges, health savings accounts, retirement bonds, etc.
There would need to be some fair-play adjustments, such as how to deal with people who receive government support now, but aren't paying taxes. Naturally, anyone living off of the government would want to be on Team Blue! We could simply divide this population between the teams based on random selection.
Each team could then deal with this population according to its philosophy. Team Blue might want to continue down the path of the recent health care bill. Team Red might do it differently, perhaps focusing more on efforts to take people off of welfare.
If China can do it, so can the Americans. Game on!